Texas Department of Insurance Division of Workers Compensation. Utilization Review Agent Rules Changes Effective February 2013
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1 Texas Department of Insurance Division of Workers Compensation Utilization Review Agent Rules Changes Effective February 2013
2 Various Requirements for Workers Compensation Utilization Reviews Texas Insurance Code (TIC) Chapters 1305 & 4201 Texas Labor Code (TLC), Chapters 413 and 504 Chapter 19, Subchapter U, 28 TAC (28 TAC ) 28 TAC , , , and TAC 180.1, , Chapter 10, Subchapter F, 28 TAC
3 Why did we change the URA Rules? Implement HB 4290, 81st Legislature, Regular Session, effective September 1, 2009 HB 4290 revised the definition of adverse determination in Insurance Code Chapter 4201 and clarified that all adverse determinations are subject to IRO reviews Clarify existing Utilization Review requirements
4 Key Definitions Adverse Determination A determination by a URA made on behalf of a payor that the health care services provided or proposed to be provided to an injured employee are not medically necessary or appropriate. The term does not include a denial of health care services due to the failure to request prospective or concurrent utilization review. For the purposes of this subchapter, an adverse determination does not include a determination that health care services are experimental or investigational. Utilization Review Includes a system for prospective, concurrent, or retrospective review of the medical necessity and appropriateness of health care services and a system for prospective, concurrent, or retrospective review to determine the experimental or investigational nature of health care services. The term does not include a review in response to an elective request for clarification of coverage.
5 Key Definitions Peer Review An administrative review by a health care provider performed at the insurance carrier's request without a physical examination of the injured employee. Provider of Record The physician, doctor, or other health care provider that has primary responsibility for the health care services rendered or requested on behalf of an injured employee, or a physician, doctor, or other health care provider that has rendered or has been requested to provide health care services to an injured employee. This definition includes any health care facility where health care services are rendered on an inpatient or outpatient basis.
6 Key Definitions UR Plan Must be reviewed and approved by a physician and conducted under standards developed and periodically updated. Screening criteria URA must utilize written screening criteria that are evidence-based, scientifically valid, outcome-focused, and that comply with the requirements in TIC Screening criteria must also recognize that if evidence-based medicine is not available for a particular health care service provided, the URA must utilize generally accepted standards of medical practice recognized in the medical community. For workers' compensation network coverage, screening criteria must comply with TIC Chapter 1305 and 28 TAC ; for workers' compensation non-network coverage and workers' compensation health plan, screening criteria must comply with TLC , , and , and 28 TAC Chapters 133, 134, and 137.
7 Key Definitions Referral & determination of adverse determinations Adverse determinations must be referred to and may only be determined by a physician, doctor, or other health care provider with appropriate credentials under Chapter 180 of this title (relating to Monitoring and Enforcement) and of this title (relating to Requirements and Prohibitions Relating to Personnel). Physicians and doctors performing utilization review must also comply with TLC , , and Important Message: This requirement means that all personnel, including nurses, who perform utilization review must be health care providers licensed or otherwise authorized to provide services in Texas. Non-clinicians such as claims adjusters may neither approve nor deny requests for utilization review.
8 Applicability
9 Subchapter U Non-network claims (TLC Title 5, excluding TIC 1305) Network claims (TIC 1305) Health Plan claims Political subdivisions contracting directly with health care providers or through a health benefits pool under Labor Code (b)(2)
10 Important Elements
11 Reasonable Opportunity URA must: Provide Reasonable Opportunity to requesting provider* Provide requesting provider with information that may result in approval* Provide telephone number to requesting provider* Document date & time of Reasonable Opportunity discussion & outcome* Notify TDI of Independent Review Organization request w/in one (1) working day *PRIOR to Adverse Determination
12 Reasonable Opportunity Discussion: When is it Required? Prospective not less than one (1) working day before Adverse Determination Concurrent PRIOR to Adverse Determination Retrospective not less than five (5) working days before Adverse Determination
13 Documentation The peer-to-peer discussion must be documented and must include: Date and time the reasonable opportunity was offered by the URA; Date and time the discussion, if any, took place; and Outcome of the discussion This information must be provided upon request to TDI or TDI-DWC
14 Adverse Determinations A physician, doctor or health care provider may issue an adverse determination But a physician, dentist or chiropractor must conduct the peer-to-peer discussion prior to the adverse determination A physician, dentist or chiropractor who has not previously reviewed the case must make the decision on an appeal of an adverse determination
15 Notice of Adverse Determination Must the principal reasons the clinical basis Include: the URA s internal complaint and appeal procedure & how to file a complaint with Texas Department Insurance (TDI) the professional specialty and Texas license number of the physician, doctor, or other health care provider that made the adverse determination for WC network coverage, a description or the source of the screening criteria for WC non-network coverage, a description of treatment guidelines used under Texas Department of Insurance, Division of Workers Compensation rule in Chapter 137 Independent review process
16 Clarification The notice of adverse determination may constitute a peer review report required by 28 TAC (relating to Peer Review Requirements, Reporting, and Sanctions) if the notice also complies with the required elements of that section
17 Who may request the Adverse Determination Appeal? How? An injured employee, the injured employee's representative, or the provider of record may appeal the adverse determination orally or in writing.
18 URA Appeal Procedures WC Network URA procedures must comply with: TIC Chapter 1305 and 28 TAC BOTH WC Network AND WC Non-Network URA procedures must comply with: 28 TAC TAC and TIC
19 URA Appeal Procedures Decision made by a physician, dentist, or chiropractor who has not previously reviewed the case as required by 28 TAC Chapter 180, TIC , and 28 TAC * URA must give requesting provider Reasonable Opportunity * *NOTE: If the health care services are dental services, a dentist may make the appeal decision if the services are within the scope of the dentist's license. If the health care services are chiropractic services, a chiropractor may make the appeal decision if the services are within the scope of the chiropractor's license.
20 Timeframes for Appeal Review WC Network Coverage not later than 30 days from receipt of request WC Non-Network Coverage 30 days for standard appeal Three (3) working days for concurrent review One (1) working day for inpatient length of stay
21 After the URA Reviews the Appeal The URA must issue a response letter explaining appeal resolution to individuals specified in 28 TAC (a).
22 Notice of Right to IRO Must comply with 28 TAC and include: a copy of the request for a review by an IRO form, available on the TDI website or notice in at least 12 point font that the injured employee can obtain a copy of the request for a review by an IRO form by: - accessing the TDI website at or - calling {insert URA's telephone number} to request a copy of the form, at which time the URA will send a copy of the request for a review by an IRO form to the injured employee or health care provider
23 Other Interactions with TDI-DWC Rules
24 Peer Review Reports, 28 TAC, Chapter 180 The notice of determination made in utilization review required under 28 TAC and the peer review report required by 28 TAC (relating to Peer Review Requirements, Reporting, and Sanctions) may be combined into one document if all the requirements of both sections are met. Peer review on medical necessity issues must be in writing.
25 First Responders 28 TAC Chapters 133 and 134 Utilization review plan written policies must evidence compliance with TLC , concerning Expedited Provision of Medical Benefits for Certain Injuries Sustained by First Responder in Course and Scope of Employment.
26 Pharmacy Closed Formulary 28 TAC Chapter 134, Subchapter F A URA must have procedures that the URA will implement when responding to requests for: drugs that require preauthorization, in situations in which the injured employee has received or is currently receiving the requested drugs and an adverse determination could lead to a medical emergency; and post-stabilization care and pain management medication immediately subsequent to surgery or emergency treatment, as requested by the treating physician or provider of record
27 Prospective and Concurrent Review of Health Care 28 TAC Chapter 134, Subchapter G The URA is required to assign preauthorization numbers that comply with the standards adopted by the U.S. Department of Health and Human Services in 45 C.F.R
28 Medical Billing Rules 28 TAC Chapter 133 URA rules do not exempt insurance carriers from TDI-DWC medical billing rules or modify duties imposed by those rules
29 Questions? TDI Managed Care and Quality Assurance Office (512) TDI Division of Workers Compensation Comp Connection for Health Care Providers (800)
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